BOSTON — A $1 billion bill, aimed at making Massachusetts a leader in the cutting-edge life sciences industry, could create thousands of jobs locally and fund a long-envisioned Interstate 93 interchange project.
The life sciences bill, a key part of Gov. Deval Patrick's economic strategy, will be signed into law tomorrow, just before the governor and top state lawmakers jet off to the Bio2008 conference in San Diego to pitch Massachusetts as a place for life science companies to prosper.
The bill, which would spend the $1 billion over 10 years, combines tax credits and targeted investments to lure biotechnology, pharmaceutical, medical devices and other related companies to locate and expand here, while encouraging companies to undertake ground-breaking research.
The Merrimack Valley, Cape Ann and the North Shore are home to a cluster of life sciences companies — Wyeth Pharmaceuticals, Acusphere, EMD Serono, GlaxoSmithKline and Zoll Medical Corp. to name a few. They employ thousands of people.
Rep. Barbara A. L'Italien, an Andover Democrat who supported the bill, said the life sciences plan will result in even more jobs across the region. She said it will help cities and towns by increasing their tax bases as new businesses set up shop to take advantage of the state's incentives.
Other states, most notably California, have already approved massive government investments in life sciences.
But not everyone is applauding Massachusetts' action.
Suzana Marusic is president of Lawrence-based Hooke Labs, a developer of research tools used by life science companies. As she tries to grow her young, five-person company, Marusic said state officials should cut red tape before they try to subsidize job creation.
"I would rather they just stay out of my way," Marusic said.
And Sen. Bruce E. Tarr, R-Gloucester, questioned whether the state should be making such a large investment in a single economic sector.
"It's a lot of money at a time when the commonwealth is not in a good position to spend it," Tarr said.
Robert Halpin, president of the Merrimack Valley Economic Development Council, challenged critics who questioned life sciences investment. He said it would make the industry, a key part of the state and regional economy, stronger.
"We already have thousands of jobs" in life sciences, Halpin said. "This can only help solidify that industry."
I-93 interchange
The initiative also includes a $12.6 million earmark that will go toward the Interstate 93 interchange road project that Andover has long sought.
Rep. Barry R. Finegold, D-Andover, said the highway work will encourage new high-end companies to build in Andover's I-93 corridor and at the same time relieve congested local roadways, such as Clark and Ballardvale Roads in Andover.
"With this new interchange, there'll be a serious reduction in traffic," Finegold said. "I don't think that should be understated."
The $1 billion, 10-year life sciences initiative includes $250 million in tax credits for life sciences companies that agree to create jobs here. Another $250 million is set aside for research grants to encourage those conducting cutting-edge research to stay in Massachusetts.
There's also a $500 million pot of money for construction projects to benefit the industry, which includes the interchange funds.
And the bill would fund new research centers in Boston, Dartmouth, Framingham, Lowell, Pittsfield, Springfield, Taunton and Woods Hole.
State incentives for jobs have always raised prickly questions, and there's no guarantee the jobs will follow the state money.
Pharmaceutical companies are suffering as the patents on their drugs expire and they're forced to compete with generic manufacturers. Several large life sciences companies, including drug maker Wyeth, have announced layoffs this year. Wyeth, with facilities in Andover, Cambridge and Wilmington, could layoff 5,000, 10 percent of its work force, according to reports.
Jeff Rocke, a Wyeth spokesman, could not say how many of the 2,700 Wyeth employees in Massachusetts might be laid off. While praising lawmakers for approving the incentive-laden bill, Rocke couldn't say the legislation would encourage Wyeth to expand.
"We have to continue to assess our business needs," Rocke said. "But it certainly is a positive development for retaining and positively creating growth."
Patrick rolled out the life sciences bill more than a year ago, and the Legislature gave its final approval Thursday.
The plan was to have it signed in time for Patrick, House Speaker Salvatore DiMasi and Senate President Therese Murray, along with their top aides, to tout it at the Bio2008 conference in San Diego this week.
